Question: UCL inflation changes, then the SML plotted on a graph will shift up or down part to the ILI UIN SML plotted on a graph

 UCL inflation changes, then the SML plotted on a graph will

UCL inflation changes, then the SML plotted on a graph will shift up or down part to the ILI UIN SML plotted on a graph will rotate up or down becoming more or less steep of investors become more or less Am ino risk (hence its beta coefficient) through changes in the composition of its sets and through changes in the amount of debti Quantitative Problem: You are given the following information for Wine and Cork Enterprises (WCE): TRF-5%; T = 9%; RPM - 4%, and beta - 1.2 What is WCE's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places If inflation increases by 1% but there is no change in investors' risk aversion, what is WCE's required rate of return on? Do not underme answer to two decimal places. n u Assume now that there is no change in Inflation, but risk aversion increases by 24. What is WCE's required rate of return now? Do not round intermediate calculators. Round your answer to two decimal places. If inflation increases by 1% and risk aversion increases by 2%, what is WCE's required rate of return now? Do not round Intermediate calculations. Round your answer to twe decimal places

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